Underwriting
Underwriting
The process by which an insurance carrier evaluates the risk presented by a prospective insured and determines whether to offer coverage, and if so, at what price and on what terms. For legal malpractice insurance, underwriting factors include practice area mix, firm size, claims history, geographic location, and risk management practices.
Related terms
Experience RatingAn underwriting method that adjusts an insured's premium based on their individual claims history re...Loss RatioThe ratio of claims paid (losses) to premiums earned, expressed as a percentage. A loss ratio of 60 ...Risk Management CreditA premium discount offered by malpractice carriers to law firms that implement approved risk managem...